Property Market “Healthy” despite increase of vacant private homes

The number of completed but vacant private homes in Singapore is climbing and property watchers have said the vacancy rate remains "healthy".

Vacant units pertain to completed homes which have not been sold by developers, or have been purchased are still vacant.

In second quarter of 2014, the vacancy rate of completed private homes raised to its highest level since 1st quarter of 2006 at 7.1 percent, reported by Urban Redevelopment Authority (URA).

Property watchers marked the current rate of vacancy for the market today is still healthy. As a matter of fact, they even expect to increase through the coming few years, with the significant in the increase of the suburbs.

Mr Alan Cheong, Senior Director of Research and Consultancy at Savills Singapore, explained “Looking at the way prices have been behaved and of course you have the impact of the Total Debt Servicing Ratio and the cooling measures, seemingly that about 6 to 7 % is the right or healthy vacancy level in Singapore,” He also added that vacancies will gain as more Singapore Property get completed in the course of the next few years.

Some new landed like Whitley Residences and Palms @ Sixth Avenue both to be TOP in 2015, URA also expects around 24,893 homes will be completed in 2015 while another 29,582 homes will to market in 2016.

In comparison, lower than 14,400 homes were completed in year of 2013 while 20,023 homes will be awaited to be completed this 2014.